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| 8-K - AMERIANA BANCORP | v186168_8k.htm |
Ameriana
Bancorp
Annual Meeting of
Shareholders
Shareholders
May 20,
2010
Forward-Looking
Statement
This presentation
contains forward-looking
statements, which include statements about
Ameriana’s future financial performance,
business plans and strategies. Forward-
looking statements involve future risks and
uncertainties, because of factors that could
cause actual results to differ materially from
those expressed or implied. Specific risk
factors and other uncertainties that could
affect the accuracy of forward-looking
statements are included in Ameriana’s Form
10-K for the year ended December 31, 2009.
statements, which include statements about
Ameriana’s future financial performance,
business plans and strategies. Forward-
looking statements involve future risks and
uncertainties, because of factors that could
cause actual results to differ materially from
those expressed or implied. Specific risk
factors and other uncertainties that could
affect the accuracy of forward-looking
statements are included in Ameriana’s Form
10-K for the year ended December 31, 2009.
Michael Kent
Chairman of the
Board
Introduction of
Directors:
Jerome J. Gassen –
President and Chief Executive Officer – Ameriana
Bancorp
Bancorp
Ronald R. Pritzke –
Vice Chairman of the Board, Ameriana Bancorp,
Partner - Pritzke & Davis
Partner - Pritzke & Davis
Donald C. Danielson
– Vice Chairman of the Board – City Securities
Corporation
Corporation
R. Scott Hayes –
General Counsel, Senior Partner – Hayes Copenhaver
Crider
Crider
Charles M. (Kim)
Drackett, Jr. – Chairman, President and General Manager
– Fairholme Farms Inc.
– Fairholme Farms Inc.
Richard E. Hennessey
– Executive Vice President – Real Estate
Development – Shiel Sexton Company inc.
Development – Shiel Sexton Company inc.
Michael E. Bosway –
President and Chief Executive Officer – City
Securities Corporation
Securities Corporation
Paul W. Prior –
Director Emeritus - Former President and Chairman of the
Board
Board
Representing our Independent
Auditor
BKD – Indianapolis
Office
Troy Gilstorf
Partner - BKD
Steve Moore
Partner - BKD
Mike Ososki
Manager – BKD
Introduction of Senior
Officers:
Timothy G. Clark –
Executive Vice
President and Chief Operating Officer
President and Chief Operating Officer
John J. Letter –
Senior Vice President –
Treasurer and Chief Financial Officer
Treasurer and Chief Financial Officer
Michael L. Wenstrup
– Senior Vice
President and Chief Credit Officer
President and Chief Credit Officer
Nancy A. Rogers
- Senior Vice President –
Investor Relations and Corporate Secretary
Investor Relations and Corporate Secretary
Proxy
Proposals
Election of
Directors
Ratification of
Appointment of
BKD, LLP as Independent
Auditor
BKD, LLP as Independent
Auditor
Remarks of Mr.
Kent:
Board is focused on
two key objectives:
“Well Being” of the
Company
Return on investment
to shareholders
Long - term view
Well being of the
Company
Bank’s financial
condition – “Well Capitalized”
Approved for TARP
Strong Corporate
Governance
The Company’s
strategic plan and its goals and
objectives
objectives
Quality of
Management
Remarks of Mr.
Kent:
Corporate Governance
Disclosure Committee
Development,
approval and implementation of
the long-range strategic plan
the long-range strategic plan
Independent Board
Committees provide
oversight
oversight
Board education
Management Team
Focus
Improving asset
quality
Minimizing credit
losses
Maintaining
liquidity and capital
Comprehensive risk
management approach
Jerome J. Gassen
President and
CEO
Background
Information
Headquarters – New
Castle, Indiana
Henry County
15 Locations
- 13
Banking Centers
- 1 Loan
Production Center
- 1
Insurance Office
# 1 Market Share in
Henry County – 31.25%
- $213.8 Million in
Deposits
# 4 Market Share in
Hancock County – 10.83%
- $74.2 Million in
Deposits
(FDIC summary of
deposits 6/30/09)
Hamilton County
$25.0 Million in
Deposits
(Source: FDIC)
Ameriana Bancorp -
Profile
Line of Business
Focus
Commercial/Business
Lending
Mortgage Banking
Consumer Lending and
Deposits
Ameriana Financial
Services
Ameriana Insurance
Experienced
Management Team
Enterprise Risk
Management
Ameriana Bancorp
Profile
“ Our mission and
promise is to
engage every customer in
genuine and innovative ways, to
truly understand and embrace
their individual needs and
desires, so we can provide them
with the best financial solutions
and direction.”
engage every customer in
genuine and innovative ways, to
truly understand and embrace
their individual needs and
desires, so we can provide them
with the best financial solutions
and direction.”
Industry Challenges In
2009
Commercial
Deterioration of
credit quality
Higher Industry NPAs
Higher provision
expenses
Slowing absorption
rates
Declining appraised
values; higher cap rates
Industry Challenges In
2009
Residential
Record levels of
residential foreclosures
nationwide
nationwide
Decreased property
values (20-40% declines in
appraised values)
appraised values)
Significantly
increased sale times
Tightened secondary
market and PMI standards
Government
intervention is directing write-downs
on loans in foreclosure
on loans in foreclosure
Re-defaults
Industry Challenges In
2009
Bank failures
2008 – 25
2009 – 140
YTD – 72
Negative public
opinion of bank
bailout/TARP
bailout/TARP
Regulatory
expectations on capital and
liquidity
liquidity
Ameriana – 2010 Key
Objectives
Soundness – CAPITAL
Preserve and Build
Capital
Reduce risk-based
assets, if needed
Reduce expenses and
pursue fee income
opportunities to increase net income
opportunities to increase net income
Evaluate raising
capital from traditional capital
markets i.e.
markets i.e.
Preferred stock
Subordinated
debentures
Rights offering
Evaluate
securitization of mortgage assets
Ameriana – 2010 Key
Objectives
Soundness –
Resolution of Problem Assets
Reduce NPAs and OREO
Minimize losses
Work with borrowers
in distress if possible
Utilize skills of
Special Assets Manager and Chief
Credit Officer to manage criticized and classified
assets
Credit Officer to manage criticized and classified
assets
Ensure adequacy of
ALLL
Ameriana – 2010 Key
Objectives
Profitability
Maintain or improve
Net Interest Margin
Increase Net
Interest Income by increasing
earning assets and margin
earning assets and margin
Manage expenses
Grow other income
from Ameriana Financial
Services and Ameriana Insurance
Services and Ameriana Insurance
Ameriana – 2010 Key
Objectives
Growth
Due to current
economic conditions additional
significant growth initiatives have been placed on
hold
significant growth initiatives have been placed on
hold
Ameriana Bancorp –
Profile
(as of 12/31/2009)
(as of 12/31/2009)
Ameriana Bancorp –
Consolidated
($ in 000s)
- Total
Assets - $441,563
- Total
Loans – Net of allowance - $321,544
- Total
Deposits -
$338,381
Ameriana Financial
- Assets
under Management - $ 39.1
million
Ameriana Insurance
- Total
Customers -
4,700
- P &
C Revenues
-
$779,000
2009 Financial
Results
Net loss of $264,000
compared to $741,000 net income in
2008
2008
Net interest income
increased $896M or 7.6%
Interest rate spread
improved by 55 basis points to 3.6%
at 12/31/09
at 12/31/09
Increased deposits
by 4.3% to $338.4 million
Shrank the
Investment Portfolio by 52.4% to 8.1% of total
assets
assets
Sold 16.67% interest
in Family Financial Holdings, Inc.
2009 Financial
Results
2009 Earnings
impacted by:
$930,000 increase in
provision for loan losses
$797,000 increase in
FDIC premiums
$255,000 increase in
OREO expense
$149,000 increase in
pension expense
Capital
Ratios
(As of 3/31/10)
(As of 3/31/10)
Ameriana
Bank
Actual
Well-Capitalized
TIER 1 Leverage
Ratio 8.54%
5.00%
TIER 1 Risk-Based
Capital Ratio
11.58% 6.00%
Total Risk-Based
Capital Ratio 12.83% 10.00%
($ in thousands)
(as of
12/31)
Total
Loans
Loan
Mix
(as of 12/31)
(as of 12/31)
(% of total loans)
Commercial Real Estate
Loans
Residential Real Estate
Loans
Construction Real Estate
Loans
Commercial Loans and
Leases
Consumer & Municipal
Loans
2007
2008
2009
Total
Deposits
(as of 12/31)
(as of 12/31)
($ in
thousands)
(*2005 includes brokered CD’s of
$9,977,000)
*
Deposit
Mix
(as of 12/31)
(as of 12/31)
% of total deposits
Noninterest-bearing
Deposits
NOW Deposits
Money Market
Deposits
Savings Deposits
2007
2008
2009
Certificates of
Deposits
($ in thousands)
(as of
12/31)
Net Interest
Income
Net Interest Margin
(as of 12/31)
(Net Interest Margin
is Net Interest Income presented on a tax
equivalent basis as a % of average interest - earning assets)
equivalent basis as a % of average interest - earning assets)
Credit
Quality
(as of 12/31)
(as of 12/31)
Classified and
Criticized Loans
($ in
thousands)
Credit
Quality
(as of 12/31)
(as of 12/31)
Non-Performing
Loans
($ in
thousands)
Credit
Quality
(as of 12/31)
(as of 12/31)
Non-Performing
Loans/Total Loans
(% of total loans)
Credit
Quality
(as of 12/31)
(as of 12/31)
OREO
($ in thousands)
Credit
Quality
(as of 12/31)
(as of 12/31)
Charge - offs
Credit
Quality
Net Charge – offs /
Total Loans
(as of
12/31)
2005
2006
2007
2008
2009
Credit
Quality
(as of 12/31)
(as of 12/31)
Allowance for Loan
Losses
($ in
thousands)
$2,835
$2,616
$2,677
$2,991
$4,005
Credit
Quality
(as of 12/31)
(as of 12/31)
Allowance for Loan
Losses
(% of total loans)
Questions?
Results of the
Election
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